Westpac hikes mortgage rates

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Westpac has hiked both its six month fixed term and one-year capped home loan rates.

The bank has increased its six month rate by 26 basis points to 5.85 per cent and its one-year capped rate by 25 basis points to 6.75 per cent.

The increase to Westpac's six month fixed rate takes it in line with the rates advertised by ASB and BNZ and leaves it lower than ANZ and the National Bank's 5.99 per cent.

Kiwibank currently advertises a 5.75 per cent six month fixed rate and HSBC offers 5.49 per cent to its premier customers.

Currently 56 per cent of mortgages by value are on floating, or variable, rates and 44 per cent on fixed-term rates.

Westpac's increases come after the Reserve Bank last week left the Official Cash Rate (OCR) unchanged at 2.5 per cent but indicated a hike was likely in the near future, possibly as soon as September 15.

Westpac's move is the second by a major bank since last Thursday's OCR announcement following Kiwibank raising the limit of its capped variable mortgage rate by 25 basis points to 6.5 per cent last Friday.

- INTEREST.CO.NZ